Introduction
Strategic management is an essential part of any successful business. However, the type of approach chosen depends on prevailing internal and external factors. Consequently, the essay will examine some these factors in relation to the strategic approach chosen.
Question 1
Description of Jet Blue Airline’s business model
Jet Blue’s Business model is a combination of two aspects. The first is that the company continually improves its product offering i.e. it is dynamic. At first, it marketed itself as a low cost Airline. However, with time, the company realized it could improve its image through good customer service and this has been a propelling factor for the Airline. The second aspect of Jet Blue’s business model is to operate with a lean staff base. They only have a small number of employees as they direct customers to deal with flight issues online. This lean business model has been the most important contributor to the company’s profitability. (Schienberg, 2006)
How the concept of improvisation is important to the Airline’s ability to compete
Jet Blue is a low cost Airline and cannot afford an extra team of in-flight kitchen employees. The company realized that offering food is an important segment of customer service. It improvised by substituting food with friendly attendants, personalized television sets and very comfortable seats. Besides this, the Airline’s leg space is adequate enough for it passengers.
Improvisation can also be seen by the fact that company conducts all its booking online. There is no need to employ extra staff to deal with the large numbers directly thus minimizing operating expenses. Additionally, the company deals with the extra workload by offering training and development. Therefore the company equips its staff members to deal with extra tasks and duties. This is also another form of improvisation. (Aguilar, 1997)
How Jet Blue ‘adaptively innovates’ and ‘consistently executes’
When Jet Blue Airline entered the US market, most critics and traditional Airlines thought that it would not last. They asserted that such carriers can only offer passengers low cost tickets but they could never match the quality of service that older carriers offered. However, Jet Blue proved its critics wrong. The company is able to offer some of the best in-flight services yet still tops the list as one of the most competitively priced Airlines in the industry. (Schienberg, 2006)
The company ‘adaptively innovates’ by ensuring that they stay ahead of the rest. This has been seen in the Airline’s service offering. In the year 2006, Jet Blue was rated as one of the most successful Airlines in terms of customer satisfaction. The survey was conducted by Aviation magazine; it rated Airlines based on the following; cost, courtesy, foods and beverages, check in and check out procedures, aircraft features, baggage handling and others. It was found that Jet Blue has consistently improved its ‘process’ factors over the years. The process factors include check in times and baggage handling. It has also been improving its customer service through its courteous and professional cabin crew. The factors were associated with traditional carriers but Jet Blue can proudly assert that it also offers the same.
Question 3
Schools of a social behavioral approach to strategy
The first school of a social behavioral approach to learning is based on societal norms within the business environment. Managers who adhere to this school of thought regard the issue of conformity as their most important factor. Another school revolves around the fact that behavior stimulates rewards. Consequently, if an organization and its employees perform a certain activity and realize that there are rewards for it, then they should adopt that activity. Another school of thought involves the individuals. Organizations are largely made up of specific individuals who may act according to their value systems. This eventually affects the image they portray of the company. Consequently, care should be taken when recruiting personnel in order to select the best representatives of the company. (Benfari, 1995)
Tools of strategy used in these schools
In the first school (i.e. the one involving the social dimension) utilizes issues such as supplier and customer relationships. The second aspect which revolves around behavior and rewards normally utilizes salary increments to motivate employees. The last school of thought normally involves the use of sound training and recruitment practices in order to ensure that the organization’s teams stays ahead of its competitors.
Differences between cultural and positioning schools
The cultural approach tends to encourage conformity while the positioning approach encourages innovation. Also, the cultural approach entails changing business processes to suit existing cultural processes. On the other hand, the positioning school involves implementation of good strategies regardless of prevailing business preferences.
Question 4
A contrast of the planning school’s approach and the entrepreneurial school’s approach
An entrepreneurial approach to strategy entails the employment of risk taking, innovation and proactive stances in business. On the other hand the planning school advocates for a more calculated approach. Entrepreneurs always want to introduce new products and be the first to engage in risky ventures. On the other hand, the planning school is more conservative in nature opting to follow earlier predictions made.
Extent of rule 9 recognition
The entrepreneurial approach adheres to this principle by constantly thinking outside the box. Entrepreneurs constantly want to outperform their competitors and they usually do this against the backdrop of a dynamic market. In order to achieve the latter targets, this school of thought requires that managers know where they are going. No business person can claim to be an entrepreneur when they do no have a clear vision of where they are going or how to get there. On the other hand, the planning school is quite exemplary in this regard. This approach employs a well laid out plan of action based on predicted factors about the future. The plan normally considers the long term goals and objectives of the organization and how to achieve them. Therefore, the planning school is exemplary when it comes to rule nine. (Brown & Weiner, 1995)
How each school prepares managers to deal with change at the business level
Entrepreneurial approach to strategy is quite appropriate when dealing with change. This because it is scenario based and decisions are made from the top down. Such a school of thought is highly applicable in a dynamic business environment because lower level management have direct contact with external business factors. Therefore, they are more equipped to handle change or pressure. On the other hand, the planning approach to strategy is suitable for stable environments. However, this approach also leaves some room for changing the business approach. This is because it entails measuring and evaluating changes. If results do not fall within the required standards, then the process is repeated.
Conclusion
Strategic management may be scenario based or plan based. The latter is more appropriate for stable environments while the entrepreneurial approach is more appropriate for dynamic business environments.
Reference:
Schienberg, J. (2006): Jet Blue continental tops in airline satisfaction, retrieved from http://money.cnn.com/quote/quote.html?symb=JBLU accessed on 25th June 2008
Brown, A. & Weiner, E. (1995); Supermanaging: How to harness change for personal and organizational success; New York: Mentor
Benfari, R. (1995): Changing Management Styles; Lexington Books
Aguilar, F. (1997): Scanning business environments; Macmillan
